Tenerife might sing melodiously about the three S’s but another letter has now been filed in triplicate under ‘assets’. When it comes to buying property, people have been flocking to the island to collect on the three L’s – location, location, location.
At only four hours flying time from the UK it’s a mere trot to the tropics (subtropics technically, but who cares about latitudinal degrees when you’re after a substantial quantity of Celsius ones).
Obviously the strongest card the island has to play is the climate (arguably the healthiest in the world). But there are other reasons why the mellow yellow island has now become a hotspot for the prudent property investor.
The Canaries – high flyers
A report published by the C.E.I. (European Confederation of Real Estate Agents), one of Europe’s largest professional organisations of estate agents, highlights the growth in popularity for regions such as Tenerife. The tourist areas of Spain notched the highest returns throughout Europe for prudent investors, with a whopping 240 per cent increase in values over the past five years.
Recent efforts by the local authorities have dispelled the notion that the island is merely a hedonistic playground. Tenerife is moving upmarket, evident in the fact that the number of visitors staying in five-star accommodation has doubled in the past two years.
Those who would never have even considered Tenerife as a chic retreat are now looking to snap up property in the only winter refuge in Europe where sunshine is all but guaranteed.
Making a nest
Of course investment return is not the number one priority for all purchasers. While the rest of Europe turns blue in winter British swallows fly south to buy winter boltholes away from the damp and grey.
Permanent retirement to the region has also become a viable proposition. Retired couples are selling their properties in Britain at premium value and finding themselves in a position to afford to buy property in the Canary Islands with cash left over to boost their nest eggs and all the ‘Ls’ and ‘Ss’ they’ll ever need.